Rubberex joins share buyback bandwagon

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KUALA LUMPUR (Sept 11): Rubberex Corp (M) Bhd has become the latest rubber glove maker to buy back its shares after a selldown.

The group said it spent RM8.05 million today to buy back 1.54 million shares at between RM4.82 and RM5.22.

The amount spent is equivalent to 10.6% of its cash pile of RM76.07 million as at June 30, Rubberex said in a filing with Bursa Malaysia.

Top Glove Corp Bhd and Supermax Corp Bhd had earlier taken similar action.

Rubberex’s share price had declined for seven consecutive days to reach a seven-week low of RM4.30 yesterday.

It declined further to RM4.10 today before recovering to close at RM5.28, for a gain of 98 sen or 22.79%.

Rubberex was among the day’s top gainers on Bursa Malaysia.

While its share price had plunged 23.4% from its all-time high of RM6.89, Rubberex is still up by 878% year-to-date. It has a market capitalisation of RM1.46 billion.

Following today's purchase, the group said its cumulative net outstanding treasury shares stood at 1.54 million, while its adjusted issued capital was 277.43 million shares.

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S Kanagaraju